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Loan Servicer

All articles tagged with #loan servicer

education2 years ago•1 min saved

Education Department Cracks Down on Student Loan Servicers for Billing Errors

The Department of Education is withholding $7.2 million in payment to student loan servicer Missouri Higher Education Loan Authority (MOHELA) due to billing statement errors that resulted in 2.5 million borrowers receiving late statements. Over 800,000 borrowers were put into delinquency status as a result. The department has instructed MOHELA to place all affected borrowers in forbearance until the issue is resolved, and borrowers on income-driven repayment plans will not have the affected months counted against them. The department also found additional errors, including incorrect payment amounts and borrowers on the Borrower Defense program being put back on repayments, and those borrowers have also been placed on forbearance.

via The Hill|

#billing-errors #department-of-education #education

personal-finance2 years ago•4 min saved

Navigating Student Loan Repayment: Expert Advice and Options

Federal student loan borrowers are advised to take control of their student loans and make payments while hoping for forgiveness, as most borrowers do not receive forgiveness. The first step is to find your loan servicer, which can be done by logging into the Federal Student Aid website. Once you know who is servicing your loans, organize them in a spreadsheet and understand the details of each loan. Choose a repayment strategy based on your financial goals, such as the debt avalanche or debt snowball methods. Consider income-driven repayment plans if the standard plan is unaffordable.

via CNBC|

#debt-management #financial-planning #loan-servicer

personal-finance2 years ago•3 min saved

Student Loan Borrowers Face Nightmare as Payments Resume Under Biden's Botched Plan

Many borrowers, including a 31-year-old with $44,000 in student debt, are experiencing payment errors and enrollment issues with the new income-driven repayment (IDR) plan introduced by the Biden administration. At least 420,000 borrowers have had their payment calculations miscalculated by loan servicers, causing frustration and confusion. The errors primarily affect those who tried to enroll in the Saving on a Valuable Education (SAVE) plan, which was touted as a more affordable option. The U.S. Department of Education is working to rectify the problems and has placed affected borrowers in forbearance until the payment amounts are corrected. The Biden administration has encouraged borrowers to enroll in the SAVE plan, but the rollout has been plagued with issues, leaving borrowers struggling to navigate the repayment process.

via Yahoo Finance|

#biden-administration #income-driven-repayment #loan-servicer

finance2 years ago•3 min saved

Preparing for the End of the Federal Student Loan Pause.

The federal student loan payment pause will end on September 1, and payments will be due in October. Borrowers can prepare by checking their budget, getting in touch with their loan servicer, and making arrangements to pay. Income-driven repayment plans are available to all federal student loan borrowers, and borrowers can explore options to continue pausing their payments or enroll in a more affordable payment plan. The Biden administration maintains its legal authority to go through with its current agenda and says payments will resume this year.

via CNBC|

#budgeting #federal-loans #finance

personal-finance2 years ago•3 min saved

"Payment Restart: 3 Major Changes for Student Loan Borrowers"

Student loan borrowers could see three major changes when payments restart, including the possibility of lower payments from loan forgiveness if the Supreme Court approves Biden's plan to cancel up to $10,000 in student debt per borrower. The Biden administration is also working on a new income-driven repayment plan that would require borrowers to pay 5% of their discretionary income toward their undergraduate student loans, and borrowers may have to adjust to a new loan servicer as several companies that managed federal student loans have ended their relationship with the government.

via CNBC|

#biden-administration #loan-forgiveness #loan-servicer